S&W Seed Company Q4 FY2024 earnings call

• Americas Business: Double Team sorghum revenue saw a 68% increase to $10.9 million, expected to be on 13%-15% of grain sorghum acres next year. Progress in streamlining inventories with Americas carryout inventory to be reduced over 30% year-over-year. Launch of second-generation Double Team trait (DT2) and Prussic Acid Free trait.
• Joint Venture with Shell: Vision Bioenergy granted a global license to Camelina varieties, planning to sample herbicide-tolerant system in 2024 and potential commercial launch in 2025.
• Australia Operations: S&W Australia entered voluntary administration in July 2024, with the process expected to conclude in November 2024, and working collaboratively with administrators.

For the year, total revenue was $60.4 million. Sorghum sales were $20.3 million (up from $18.5 million last year), with Double Team at $10.9 million (a 68% increase from the previous year). Americas forage sales were $9.9 million. International forage sales were $29.1 million (down from $43.6 million last year). The Americas had gross margins of 29% in fiscal 2024 compared to 16% in the prior year. The Australia domestic operation had revenue of $29.1 million last year, which was down 33% and faced challenges like import restrictions and debt obligations.

• Expect continued growth in Double Team operations in the Americas in 2025.
• Intend to provide detailed outlook for go-forward operations during the release of first quarter fiscal 2025 results in mid-November 2024.
• Prussic-Free to have a full launch in 2025.

• Challenges in international operations, such as import restrictions in Australia (Saudi Arabia discontinuing import permits for Alfalfa seed and forages) and increased risk of not meeting debt obligations leading to voluntary administration.
• Risks associated with forward-looking statements, including factors that could cause actual results to differ from projections.

Q: Break down EBITDA loss embedded in Australian operation and relative scale of losses.

A: Reconciliation in 10-K, will provide details once 10-K is accessed.

Q: Liability associated with Australian business, max liability.

A: Discussions progressing for resolution of A$15 million (US$10 million) guarantee, expected to conclude in November.

Q: Outlook for Americas given not having cash flows from VBO and wheat JV.

A: Continued growth in Double Team platform, Prussic-Free pilot to full launch, operational improvements, and working with new lender for funding.